350,000 workers tap superannuation early for second time – Sydney Morning Herald

Of the 511,000 applications made for superannuation early access in total for the week from June 29 to July 5, which covers applications across both financial years,165,000 people applied for the first time. The cumulative withdrawals over the full week totalled $1 billion.
From April 20 to 27, the first week of the scheme, there were 665,000 applications received. Some of those who applied during the first tranche would not have any superannuation left to drawn on during the second period, while others may have seen an improvement in their financial circumstances.
Temporary residents were able to withdraw $10,000 in the first tranche but excluded this financial year.
A total $23.3 billion worth of applications have been made since the scheme was introduced in April, with $19.1 billion so far paid out, and 2.7 million requests have been received. Some applications made during the first week were not paid until after this reporting period.
Treasury initially estimated $27 billion would be withdrawn from the scheme, however data provided to the Financial Review found this figure would be surpassed within the first week of the new financial year.
Industry Super Australia estimated $35 billion to $40 billion could be withdrawn under the scheme. An ISA spokesman said funds had “planned for and put in place measures to meet a likely surge in applications when the second tranche of the scheme opened in July”.
Liberal backbencher Andrew Bragg has proposed a permanent extension of the scheme, however the idea has been opposed by the superannuation industry, including ISA chairman Greg Combet who warned it could affect the funds’ stability and future investment plans.
Treasury’s review into the retirement industry, which has sparked debate about the role of super, is due to be handed to the federal government on July 24.

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